174 The Financial Times Guide to Corporate Valuation
Outcomes of value-based management
So, how well does VBM work? Since a full implementation of VBM is nei-
ther an easy nor a fast process, the benefits must be substantial in order to
justify the work during the year it usually takes to complete an implemen-
tation of VBM.
Clearly, VBM suits some companies and not others. There are certainly a
large number of success stories using VBM, but there are also examples of
companies that tried to implement VBM and then abandoned it after a
while. Specifically, VBM is far more easily implemented in a company active
in a stable industry than for a firm that operates in rapidly changing mar-
kets. In high-growth industries, the company value is ...